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Dear ,
A week into the government shutdown, political agreement on the state budget is still elusive. The following offers a few quick updates on the state shutdown and services:
Select Services to Continue During Shutdown
The continuing impasse between the Legislature and Governor resulted in a government shutdown on July 1, 2011. For homeless shelters, transitional and supportive housing providers, and service providers, the shutdown will stop all state grants to programs.
Two days before the government shutdown, Judge Kathleen Gearin issued a ruling establishing which state programs will receive temporary funding until state budget bills are passed into law. Services that are deemed "core functions" of government will continue during the shutdown--but are defined very narrowly due to the constitutional requirement that state funds not be dispersed without legislative appropriations.
Judge Gearin's ruling on June 29 adopted many of Governor Dayton's recommendations for essential services. Under the court's order, funding may continue until the end of July or later for services meeting the following criteria, in order of priority:
- Basic custodial care for residents of state correctional facilities, regional treatment centers, nursing homes, veterans homes, and residential academies and other similar state-operated services
- Maintenance of public safety and immediate public health concerns
- Provision of benefit payments and medical services to individuals
- Preservation of essential elements of the financial system of the government
- Necessary administration and supportive services, including but not limited to computer system maintenance, Internet security and issuance of payments.
Services provided through specific federal programs will also continue during the shutdown, according to Judge Gearin's ruling. Federal programs in which the state participates to "ensure the health, safety and welfare of Minnesota citizens" will receive temporary funding, including:
- Medicaid (known as Medical Assistance in Minnesota)
- Supplemental Nutrition Assistance Program (SNAP, formerly known as Food Stamps)
- Temporary Assistance to Needy Families (TANF).
While the disruption of funding to programs like non-TANF childcare was recognized as potentially causing "extreme hardship to low income working parents," the court ruling stated that "these likely consequences can only be avoided by the exercise of legislative and executive branch discretion in settling the budget issues." Nonprofit services that don't meet the criteria listed above were not ruled to be essential, despite the recognition of vulnerability in the clients they serve and progress achieved--"Neither the good services they provide nor the fact that they may cease to exist without state funding is sufficient cause to deem their funding to be a critical core function of government."
Lawfully-appropriated payments of state aid to cities and counties, plus funding for education required by the Minnesota Constitution, were also among the list of services deemed to be "core functions." Please click here to see the June 29 ruling and description of essential services.
For More Information:
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Appealing for Consideration as an "Essential Service"
With a short list of services deemed "core government functions" in Judge Gearin's ruling, several organizations have made appeals for continued state funding during the shutdown. As of July 5, more than 30 groups argued their case for funding to "Special Master" Kathleen Blatz, a former Supreme Court Justice appointed by Judge Gearin to hear from petitioners and make recommendations on essential services.
In accordance with the tight definition of "core functions" outlined by Judge Gearin, groups appearing before the Special Master must offer legal arguments that demonstrate an interruption in services would result in severe, statewide economic impact or pose threats to public health and/or safety. Services that fall into the four "priority critical services" categories will be considered for temporary funding during the shutdown.
Hearings with the Special Master started on July 1 and will continue until all groups have been heard. A hearing with the Special Master on Friday, July 8, had few groups scheduled to appeal.
Check out footage from the hearing on July 1 here. ________________________
Governor, Advocates Act to Protect Homeless Services
In a hearing before Special Master Blatz on July 1, representatives of Heading Home Minnesota, the Minnesota Coalition for the Homeless, and several member organizations made the case for homeless services to continue as "critical core functions of government." Guild Inc. and Hearth Connection prepared testimony in support of permanent supportive housing to households experiencing long-term homelessness. Julie Grothe, supervisor for Guild's Delancey Street team, attended the hearing on behalf of the regional projects but was not called to testify. Coalition representatives contended that homeless services meet two core requirements for funding during the shutdown: public safety and/or health and basic custodial care.
On the heels of the Fourth of July holiday, Governor Dayton also added more essential services for consideration by Special Master Blatz. In submitting his request, Governor Dayton acknowledged that while there are narrow limits to what can services can constitutionally continue to be funded by the state without legislative appropriations, we must "protect the lives, health, and safety of all Minnesotans." Dayton agreed with the Coalition's petition to classify services funded through the Long-Term Homeless Supportive Services Fund (LTHSSF), Family Homelessness Prevention and Assistance Program (FHPAP), and Transitional Housing Program as core functions of government.
Services recently added to Governor Dayton's list of recommended "core functions" include the following:
- Special education aid
- Chemical dependency and mental health services
- HIV case management and counseling services
- Services for victims of domestic violence, sexual assault, and other crimes
- Child care assistance
- Services for the homeless, the disabled, and other vulnerable Minnesotans
Special Master Blatz has not yet issued a decision on the Governor's petition regarding homeless services.
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Federal Policy Update
Elections Have Consequences -- Homeless Veterans Priorities Results in Increased Funding
On Thursday, June 30, the Senate Appropriations Committee passed a Veterans Affairs appropriations bill for fiscal year 2012. The bill would offer funding for programs serving homeless veterans within the Department of Veterans Affairs (VA). The bill contained $939 million for programs serving homeless veterans over two years. This funding level includes $224 million for the Grant and Per Diem Program. Both funding levels are the same amount requested by the President in his Budget Request and the same amount passed by the House in early June.
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HUD and NAEH Announce Webinar on International Efforts to End Youth Homelessness
The U.S. Department of Housing and Urban Development (HUD) and the National Alliance to End Homelessness (NAEH) have announced a webinar on international models for ending youth homelessness to broadcast Tuesday, July 12, at 3:30 PM ET. This webinar will offer a perspective on the various efforts made in Canada, Australia, and the United States to address youth homelessness. Nan Roman, President and CEO of the Alliance, will offer welcoming remarks and introductions followed by a question and answer panel with Narelle Clay, CEO of Southern Youth and Family Services in New South Wales, Australia; Michael Coffey, CEO of YFoundations in New South Wales, Australia; and Bruce Pearce, President of the Canadian Housing and Renewals Association. Additionally, Fred Karnas, Senior Advisor to HUD Secretary Shaun Donovan will be featured as a speaker and moderator.
The webinar will be available for viewing at 3:15 PM ET on July 12 by clicking on the "Watch today's webcast" heading on the right side of this page.
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Debt Ceiling Debate May Have Consequences for Homeless Programs
Domestic Programs Face Threat of Cuts
The U.S. government hit the debt ceiling on May 16. In response, Treasury Secretary Timothy Geithner announced that he would suspend investments in federal retirement funds until August 2, 2011. This would help create room for the government to continue borrowing in the debt markets and protect the full faith and credit of the United States. Many economists fear severe economic consequences if the United States defaults on its loans after August 2.
In response, President Obama and Congress are in close negotiations to reach a "grand bargain" that would significantly lower domestic spending in exchange for an increase in the debt ceiling. But the White House and congressional leaders confirm that the talks are focusing on significant cuts--at least $3 to $4 trillion over a 10- to 12-year period. Some homeless advocates in the beltway suspect that promises for cuts will be gradually stepped up over the next decade because many fear that significant losses in federal funding now could jeopardize an already lagging economic recovery. However, there is talk that entitlements such as Medicare and Social Security may be a part of a "grand bargain."
The current discussion of significant decreases in domestic programs may jeopardize the timeline and goals established by HUD and HHS to address chronic, veteran, family, and youth homelessness. Homeless advocates have been heartened by the publication last year from President Obama's Administration of the "Opening Doors: Federal Strategic Plan to Prevent and End Homelessness." The plan, coordinated among various departments of the federal government by the U.S. Interagency Council on Homelessness, seeks considerable new levels of funding to achieve its goals. Hearth Connection will be watching the debate closely and will continue to report on this matter.
For more information on the debt ceiling, please view this article.
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As more information on the state shutdown and budget negotiations becomes available, we will continue to keep you informed in future newsletters. If you are not signed up to receive Hearth Connection's legislative updates, please click here.
Thank you for your interest and involvement in policy issues that affect all Minnesotans and especially the homeless and vulnerable populations being served.
Sincerely, |
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Richard Hooks Wayman
Executive Director, Hearth Connection
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